GBP/USD Fundamental Analysis October 9, 2014 Forecast

Analysis and Recommendations:

The GBP/USD eased by 20 points to trade at 1.6078 paying little attention to the Halifax House Price Index which met expectations. Traders are watching the Bank of England meeting tomorrow. Yesterday the Sterling Pound traded on a positive note and gained 0.1 percent. The currency surged on the back of weakness in the DX. However, weak market sentiments along with unfavorable economic data from the country restricted sharp positive movement in the Sterling Pound. The currency touched an intra-day high of 1.6128 and closed at 1.6093 on Tuesday. UK’s Manufacturing Production grew at slow pace of 0.1 percent in August as against a rise of 0.3 percent a month ago.

The strength of the dollar coupled with weak market sentiments will act as a negative factor. Further, IMF estimating a slow growth outlook of 2.7 percent in 2015 because of rise in interest rates will continue with downside movement in the currency. While on the other hand, forecast for favorable economic data from the country along with forecast for growth of 3.2 percent in 2014 will cushion sharp downside or reversal in the currency.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.

Today’s economic releases actual vs. forecast:

 

Upcoming Economic Events that you should be monitoring:

Government Bond Auction

Date Time Country Auction

Oct 08 09:30 Germany Eur 4.0bn Oct 2019 Bobl auction

Oct 08 09:30 Swiss Bond auction (for decision)

Oct 08 15:30 Italy Announces details of BTP

Oct 08 17:00 US 10Y Note auction

Oct 09 09:03 Sweden I/L bond auction

Oct 09 17:00 US 30Y bond auction

Oct 10 09:10 Italy BOT auction